UAE Gratuity Calculator

Basic salary only, as stated in the MOHRE-registered employment contract — not gross salary and not your total package. Housing allowance, transport allowance, utilities, bonuses, commissions, and overtime are all excluded from the calculation. If your offer letter only shows one combined number, ask your employer or HR for the basic-salary breakdown before trusting any gratuity estimate, including this one.

21 days of basic salary for each of the first 5 years of service, then 30 days of basic salary for each year after that. A 'day' of pay is conventionally the monthly basic salary divided by 30. The total is capped at 2 years' basic wage, however long the service was. You need at least 1 full year of continuous service before any of this is owed.

Since the labour law reform that took effect 2 February 2022 (Federal Decree-Law No. 33 of 2021), resignation and termination are calculated the same way for an eligible employee — you get the full prorated gratuity either way, provided you've completed at least 1 year of service and served any required notice period. This is a real change: a lot of older articles and calculators online still describe the pre-2022 rule, where unlimited contracts paid only 1/3 or 2/3 of gratuity on early resignation and limited contracts could pay nothing at all. That sliding scale no longer exists.

This is the one area where sources genuinely disagree, so we're not going to pretend it's settled. The clearer trend under the current law is that gratuity is not automatically forfeited even for a summary dismissal under Article 44 (the gross-misconduct grounds) — forfeiture is described as requiring the specific grounds to be legally proven, not just alleged. But this is exactly the kind of dispute that ends up in front of MOHRE or a court, and the outcome can turn on facts specific to the case. If your termination reason is contested, don't rely on this calculator for the actual number — get MOHRE or a labour lawyer involved.

Yes. Periods of unpaid leave are generally excluded from the service period used to calculate gratuity, which can lower your effective years of service below what your total employment dates would suggest. This calculator asks for years of service directly, so if you've taken unpaid leave, use your actual paid/counted service length, not your total tenure with the company.

No. DIFC employees have been covered by the mandatory DEWS workplace savings scheme since February 2020, not this gratuity formula. ADGM runs its own separate employment regulations. Federal and local government employees, armed forces, police, security personnel, and domestic workers are all explicitly outside the scope of Federal Decree-Law No. 33 of 2021 (Article 3) and follow different rules entirely.

Since October 2023, MOHRE has offered private-sector employers a voluntary Alternative End-of-Service Benefits System (the Savings Scheme), where the employer pays into an investment fund monthly instead of owing a lump sum at the end. It's priced to replicate the same underlying formula (roughly 5.83% of monthly basic wage per month for the first 5 years, 8.33% after), but the payout mechanics and timing are different. Ask your employer which system you're under — if it's the Savings Scheme, this calculator's lump-sum estimate won't match how your entitlement actually accrues.

Within 14 days of the contract's end date, along with any other outstanding wages and accrued leave, under Article 53 of the labour law. A significant delay beyond that is itself something MOHRE can help with.

No. It's a plain-language estimate based on the standard formula, meant to give you a realistic ballpark before a real conversation — not a substitute for MOHRE's own tools, your employment contract, or a labour lawyer. See the disclaimer below for exactly why the real number can differ from what's shown here.